- Geregu Power Plc has reported an 84.7 per cent increase in its earnings in the second quarter, Q2.
- Geregu recorded an FX-related loss of N4.6 million under other income, a sign of broader macroeconomic headwinds facing the country.
Geregu Power Plc has reported an 84.7 per cent increase in its earnings in the second quarter (Q2), driven by a surge in energy sales.
The company’s revenue surged to N55.8 billion, from N30.2 billion reported in the same period last year, with 64.1 per cent of the total amount from energy sales.
A breakdown of the total revenue made during the period revealed that energy sold rose to N35.8 billion, while the capacity charge rose to N19.9 billion.
The increase impacted the power-generating firm’s after-tax profit by 75.4 per cent to N9.7 billion from N5.5 billion.
While Nigeria’s energy demand has been increasing due to the country’s fast-growing population and income growth, in 2023, Nigeria’s electricity demand was over 40 terawatt hours.
However, the Nigerian Electricity Regulatory Commission (NERC) estimates that demand will reach 45,662 megawatts by 2030, driven by factors like population increase, urbanisation, and economic development.
Despite strong earnings, the company’s cost structure also increased modestly. Administrative expenses rose to N2.64 billion from N2.39 billion a year earlier.
Personnel costs made up N679 million, while machinery and plant maintenance consumed N369 million, slightly down from N388 million in Q2 2024.
Geregu recorded an FX-related loss of N4.6 million under other income, a sign of broader macroeconomic headwinds facing the country.
Finance costs surged by 31.6 per cent to N3.37 billion, up from N2.56 billion, primarily due to higher interest on borrowings, bonds, and receivables.
The power-generating firm’s total assets rose to N267 billion from N207 billion, while total liabilities rose to N216 billion from N162 billion.
Its shareholders’ fund during the reviewed period also rose to N51.4 billion from N45.1 billion.
The company’s cash flows for the six months were as follows: Net cash from operating activities amounted to N29.6 billion, a significant improvement from the negative N5.14 million recorded in the previous period; net cash generated from investing activities amounted to N1.04 billion, a decline from the N4.25 billion recorded in the first half of 2024.
Net cash used in financing activities recorded amounted to a negative N31 billion from N30.8 billion generated in the corresponding period of 2024. Cash and cash equivalents for the period fell to N39.5 billion from N43.3 billion.